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Airbus Announces More Delays To A380
By Emma Vandore, AP Business Writer
Manufacturing.Net - May 13, 2008

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PARIS (AP) -- Airbus on Tuesday announced new delays on deliveries of the superjumbo A380, already almost two years late, saying the company is behind schedule switching to automated production.

The European aircraft maker said in a statement that it will deliver 12 planes in 2008 instead of 13, and 21 planes in 2009 instead of 25. Executives will talk to customers about deliveries for 2010 -- originally foreseen at 45 -- in the coming weeks.

Airbus CEO Tom Enders said the switch from individual production of the planes to serial production is about two to three months delayed. He declined to say when Airbus will meet its goal of delivering four A380s per month, a pace the planemaker had hoped to meet in 2010.

''This is unfortunately not the first delay and as CEO of Airbus I have to say I regret this very much,'' Enders said in a conference call.

But he said the additional delays should not be compared with the problems that have so far plagued the superjumbo program.

''We are not talking about a catastrophic scenario,'' he said.

A series of increasingly worrying announcements beginning June 2005 revealed missteps, technical setbacks, communication failures and financial improprieties that tarnished the planemaker's image.

Botched management of production of the 525-seat superjumbo compounded wiring difficulties and communication failures among Airbus plants in Germany and France.

Enders declined to say how much the financial penalties from the additional late delivery will cost Airbus. Combined with spiraling development costs, penalties have already wiped billions from Airbus profits.

Airbus rival Boeing Co. is also dealing with delays to its long-range 787 jetliner which analysts say will cost billions of dollars. The Chicago-based planemaker has pushed back the date for delivering the first of the 787s three times.

Japan's All Nippon Airways, the first customer on the list, was supposed to receive its first of the jetliners this month, but that was recently rescheduled for the third quarter of 2009.

Airbus, which is owned by European Aeronautic Defence & Space Co., has delivered four A380s to Singapore Airlines so far. It has 17 more superjumbos destined for customers including Emirates Airlines and Qantas that are in various stages of production.

''The changes in production schedules will potentially have some impact; the details of which we will need to understand from Airbus,'' Singapore Airlines, which has ordered 19 A380s, said in a statement.

John Leahy, Airbus' chief salesman, said he doesn't expect any cancellations as a result of the new delays.

Airbus says total orders for the A380 stand at 192. Emirates is the biggest customer with 58 superjumbos on order.

EADS is to release first-quarter earnings Wednesday.

Its shares rose 1.01 percent to 15.9 euros ($24.53) in Paris morning trade.


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